Edward Bintz, Douglas Pelley and Gregory Hughes
To explain the implications of a March 2016 US District Court decision in Sun Capital concerning two private equity funds’ joint and several liability for the withdrawal from a…
Abstract
Purpose
To explain the implications of a March 2016 US District Court decision in Sun Capital concerning two private equity funds’ joint and several liability for the withdrawal from a multiemployer pension plan by a bankrupt portfolio company.
Design/methodology/approach
Explains controlled group liability under Title IV of ERISA, strategies employed by private equity funds to avoid such liability, two earlier stages of the Sun Capital litigation, and the rationale for the current court decision. Makes observations.
Findings
The court held that two private equity funds were jointly and severally liable under Title IV of ERISA for multiemployer pension plan withdrawal liability incurred by a bankrupt portfolio company that was jointly owned by the funds based on the novel (and troubling) rationale that a “partnership in fact” existed between the funds, despite neither fund separately owning a sufficient percentage of the portfolio company to be exposed to joint and several liability under Title IV’s controlled group rules. The decision is disturbing because it marks a significant change in the law; it upsets longstanding strategies used by funds and other investors to insulate themselves from ERISA liabilities.
Originality/value
Expert analysis from experienced employee benefits and compensation lawyers.
Details
Keywords
The following bibliography focuses mainly on programs which can run on IBM microcomputers and compatibles under the operating system PC DOS/MS DOS, and which can be used in online…
Abstract
The following bibliography focuses mainly on programs which can run on IBM microcomputers and compatibles under the operating system PC DOS/MS DOS, and which can be used in online information and documentation work. They fall into the following categories:
Aarhus Kommunes Biblioteker (Teknisk Bibliotek), Ingerslevs Plads 7, Aarhus, Denmark. Representative: V. NEDERGAARD PEDERSEN (Librarian).
Examines Laughlin Currie's experiences in helping to implement the New Deal, a new monetary system of Roosevelt's administration implemented during the 1930s.
Abstract
Examines Laughlin Currie's experiences in helping to implement the New Deal, a new monetary system of Roosevelt's administration implemented during the 1930s.
Details
Keywords
Marius Oosthuizen and Caren Scheepers
The case study uses a strategic foresight method, scenario-planning, to examine the strategic options for a financial services firm. As such, it covers the fields of strategy…
Abstract
Subject area
The case study uses a strategic foresight method, scenario-planning, to examine the strategic options for a financial services firm. As such, it covers the fields of strategy, environment of business, innovation, digital disruption and organizational change as they relate to the firm’s ability to adapt to changes in the environment of business in an emerging market context.
Study level/applicability
The case was developed with master's-level students in mind, particularly those seeking a master of business administration, masters in strategic foresight or related management degrees.
Case overview
The case of NEDBANK, a longstanding and successful financial services firm based in South Africa is confronted with major challenges from competitors because of technological change in the industry as well as having to expand their market penetration across Africa. A rising regulatory burden, tough economic conditions and the need to access low income markets, provide a significant organizational development challenge as a decades-old bank, known for a relational approach to banking, has to navigate the new domains of “fintech”, micro-lending and public sector banking.
Expected learning outcomes
Students will gain comprehensive insight into the industry environment in emerging markets, understand the strategic management challenge before financial services firms in this environment and be able to consider the alternative strategic interventions that may be used to ensure corporate sustainability amid these challenges. Simultaneously, the case provides a comprehensive view into the use and application of scenario-planning for strategic management.
Supplementary materials
Teaching Notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.
Subject code
CSS: 11: Strategy